Japanese Financial firm SBI’s newest financial report includes a section titled “Business Area Separation of Ripple and R3.” In this section, the financial giant recognizes the impact Ripple can potentially make in the field of international transactions.
SBI truly is a financial heavy hitter. The company is valued at over $4 billion and offers numerous financial services including securities management. SBI has also shown to be favorable towards blockchain and cryptocurrency.
The Japanese company has already launched their own cryptocurrency exchange, VCTRADE, and a derivatives market for the cryptocurrency. Now SBI is looking to take on an even bigger role in the financial world.
SBI is looking to corner the industry of international transactions. In their report, SBI notes that Ripple specializes “in international remittance.” They also note that R3’s Corda Settler can be groundbreaking when teamed up with XRP. SBI intends to use these new efficient platforms that “are not limited to the financial industry by using smart contract-based technology.”
This technology could make old practices obsolete and the old guard of international transactions could be in danger of disappearing. The SWIFT system, which is the infrastructure relied upon for most international transactions, has been in desperate need of an update. Now international transactions could be getting a huge speed and efficiency boost as Swift connects with R3’s Corda platform.
R3’s co-founder, Todd McDonald is excited about the integration. He announced yesterday,
“SWIFT GPI will integrate directly to Corda Settler, the application that allows participants on the Corda blockchain to initiate and settle payment obligations via both traditional and blockchain-based rails.” He says the impact will be significant. “This will enable obligations created or represented on Corda to be settled via the large and growing SWIFT GPI network.”
With this new speed and efficiency in mind, SBI is thinking of major expansion abroad.
“We are also considering business development not only for Japan but also for East Asia. The SBI Group is expanding its capital and alliance with digital asset-related venture companies to build digital asset-based ecosystems.”
As more banks see the benefits, expect them to jump on the blockchain bandwagon.